THE GENERAL MANAGER, THE KARIMNAGAR DISTRICT COOPERATIVE CENTRAL BANK LIMITED, KARIMNAGAR AND ANOTHER Vs. THE A.P. COOPERATIVE TRIBUNAL, AT WARANGAL, REP. BY ITS SECRETARY AND OTHERS

JUDGEMENT

(1.) Heard learned Counsel for the Petitioner and the counsel for 2nd respondent.

(2.) The Karimnagar District Cooperative Central Bank Limited, Karimnagar granted a cash credit facility to the tune of Rs.3.00 lakhs on 20.05.1993 to the second respondent herein. They operated the account till 31.03.1994. Thereafter, they did not operate the account. At the time of availing cash credit facility, a promissory note was executed along with a letter of continuity, letter of acceptance, deed of hypothecation and an agreement. Since the second respondent failed to repay the outstanding amount, the first petitioner issued a notice on 01.11.1999 to the second respondent calling upon them to clear the outstanding amount. In spite of the said notice when the second respondent did not repay the amount, nor submitted any reply, proceedings were initiated before the second petitioner on 06.11.1999. The second petitioner passed an award in Rc.No.2 of 1999 on 05.01.2000 for an amount of Rs.5,94,187.00. Challenging the same, the second respondent filed C.T.A.No.44 of 2000 and the same was allowed on 12.03.2006 remanding the matter to the second petitioner/Arbitrator for fresh disposal. After remand, the second petitioner passed an award on 22.09.2006 in Rc.No.21/2006/1360/L for an amount of Rs.8,49,843.33 ps., with interest at 22% p.a., from 01.04.2006. Challenging the same, the second respondent filed CTA No.101 of 2006 before the A.P. Cooperative Tribunal, which set aside the award dated 22.09.2006 by its order dated 20.12.2005 on the ground that the claim of the first petitioner was barred by limitation and the debt cannot be recovered from the second respondent. Challenging the said order of the Tribunal, the present Writ Petition was filed.

(3.) The Writ Petition against the respondents 4 and 5 was dismissed for default by an order dated 23.06.2011. No counter affidavit is filed by the respondents 2 and 3.